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of the clo"closing bell." we are going out on the downside and negative for the week, generally speaking, for the major averages in the stock market. have a good, safe weekend. i'll see you monday. here's your second hour with maria. it is 4:00 on wall street. do you know where your money is? welcome back to the "closing bell." i'm maria bartiromo. stocks closing sharply lower today despite a better than expected october jobs report. take a look at how we're ending the week. the dow jones industrial average down 140 points today. volume not bad. nasdaq composite also weak, down 38 points. it was energy, technology, materials. the s&p 500 down 13.3 points. that was the leadership group. the market ending a shortened week. let's bring in our guests for their take on what went on. with us now, chip dixon, jeff
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cox, and rick santelli. nice to have you on the program. thanks for joining us. chip, let me begin with you. haven't see you in a little bit. we used to talk long ago when you were at a different firm. welcome back to cnbc. >> thank you. >> you are the director of research discern. what is your research telling you here about where we are in this market and in this cycle for the economy? >> well, it tell us that the housing sector is improving and the residential side. commercial permit activity, which we see, has gone up, it's kind of plateauing. it tells us we're dealing with a lot of uncertainty out there. there's a tremendous amount of pent-up capacity in corporate america if we can just get the right fiscal policies in place. this economy could do well. >> do you think things loosen up after the election when we know who the president will be? >> i think it depends. then we're going to have more clarity on the policies. what we want in place are constructive growth oriented fiscal policies.
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>> and we don't know we'll get those. rick santelli, jump in here. we had a market under pressure for sure today. you hear what chip is saying in terms of those policies. what would snap investors out of this? >> i think what would snap investors out, of course, to start to see some, a, larger and more job creation. also getting things like tax policy out of the way. i will tell you, the discussion on the floor, many talking about the dollar. is it qe, or is it romney? are the effects of the weaker stock after the number, are they effects of a stronger dollar after the number really because of qe, or are they because not only do we potentially have a challenger that's close enough to win but if that challenger does win, what's to say to bernanke, what's to say to the fed, what's to say to qe, what's to say to the bye bauy backs? you can go either way on it. all these issues are making it difficult for investors who have a good hunch to necessarily bet
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a bunch. >> very interesting day. you make a lot of good points. jeff cox, what do you think? >> i want to piggy back on this theme of good news is bad news and maybe people are worried about bernanke is going to go to the basement of the fed and pull the plug on the printing press. if investors out there are concerned that we do stop the qe train and it might get in the way of market rally, let me offer something for them. i've been crunching the numbers on the jobs report all day. the thing that stood out to me more than anything was no gain in wages. we've been stuck on this train for a while. the fed has achieved its 2% interest rate. as my friend rick says, it's even higher if you don't drive your car, if you don't eat food. another thing i saw this week, the fed loan officer survey. a smart economist told me, don't judge people by what they say. judge them by what they do. the fed loan officer survey said banks want to lend money but there's no demand. >> no demand.
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is that what you're seeing as well, chip? >> we're not seeing much demand. on the job front, the seasonal adjustments the government has in place, it's a five-years process. they tend to overstate the second half jobs numbers and understate the first half. >> second half of the year? >> yeah. >> why? >> because they're ov overcompensating for what happens in 2008. the bottom fell out in 2008. they adjust up for that. 2010 was really strong. they're under in the first half. they're compensating for that. so that understates. >> in all of this, with all of these uncertainties and what we're faced with in the economy, on the heels of sandy, how do you want to allocate capital? what are you telling investors? >> well, in terms of where the liquidity is going, because we have these liquidity ways, i think you want to be in shorter duration assets if you're going to look at the fixed income markets. you have to believe rates are going to go up. then you have to look at equity groups. that's where the last waves go into the more risky assets.
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>> and you're seeing that? >> yes. >> all right. we'll leave it there. chip, good to have you on the program. jeff, rick, thanks very much. let's keep our focus zeroed in on the markets. bill stone helps to oversee more than $55 billion in assets. hendrick is in charge of about $100 billion. we want to find out where they're putting their money to work and how they see this market. both join me now. gentlemen, good to have you. bill, you say it's time to be more cautious in equities? >> yeah, we recently really lowered our allocation down to baseline. i think it's for a lot of the reasons that were discussed. even once we get past the election, we're at a point where we really have to worry about, you know, some upcoming decisions on the fiscal cliff. certainly we've had really good returns in the market year to date. so i think there's a reason to make take a little risk off the table and take a little risk maybe in a different place, over in more credit exposure. >> and so you are raising cash
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then in equities. >> well, we recently -- reallocated over to high yield bank loans. really doing it on the credit side. >> hendrick, what about you? >> we continue to like equities, although technically i think bob may be correct. if you look strategically, you want to buy income streams that are protected in real terms and are growing. we like the credit business, but the long-term bond business, the government bond business is risky because yields are just too low for us. >> okay. so yields are just too low. everybody is trying to figure out where the yield is. in the equity world, would you be going for dividend payers? are you going for corporate bonds? tell me where the yield is. >> we always like dividend payers to start with. we think global quality stocks, those stocks which cover many geographies where dividend
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streams have been growing which are not dependent on bank finance, look interesting, and of course on the credit side, taking the place of banks as they pull back. it's an opportunity to get extra yield. >> even though the emerging markets are slowing down, you're not seeing those hot spot numbers we were seeing. brazil at one point was growing, what, 7%. last quarter was 0.5%. >> yes, but if you look as far as the world economy is concerned, it's still growing. next year, you know, everyone talks about china growing at 7%. there is volume growth. volume growth is what's interesting. you get fairly valued stocks, particularly in the developed markets. >> okay. good asasessment there. bill, the election is on tuesday. it's finally here. looking ahead to the election and beyond, what's the potential market impact?
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>> well, like i said, unfortunately we go to more uncertainty regarding the fiscal cliff. that's another reason to be a little more cautious and kind of to your earlier point, i think investors are going to continue to seek income to seek yield. so we'd be really interested in that dividend income play as well. gives you a little insulation against economic moves as well. >> does the reason to buy dividend payers change if dividend taxes go to 43%? they will automatically go to 43% unless these guys agree not to allow those bush tax cuts to expire. so what happens then? >> yeah, you know, it's a great question. i think it is different this time, that it doesn't necessarily have to cause real problems with dividend paying stocks. one is because you're in a weird position where ten-year
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treasuries are 1.75%. i think there's still opportunities and obviously there's a chance that dividend rises. also, i think people lose track that about 50% of the stocks are held in nontaxable accounts. if people stash those dividend payers over there, it doesn't necessarily have to hurt them. >> hendrick, i want to get your take on the election as well. let me stay on you for one more question, bill. i wonder, really, what is going to happen in terms of the broad market earnings slowdown. does it matter to you that we are seeing a slowdown in terms of earnings? i mean, the third quarter revenue pretty much was underwhelming. it was unimpressive, the revenue growth. >> yeah, you're right. it is a concern. i think the good news is, you know, kind of what i'd attribute the rally yesterday to.
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you're seeing some firming in the global economic picture. a combination of better numbers out of china. some better numbers here, frankly. i think i feel a little better about that. i would argue our earnings estimates both this year and next year are below kind of street consensus. i still think valuations are okay. that's why you don't have to see the market get killed even though you're going to probably see some of those earnings estimates drift down over time. >> this market reaction today surprised me. i wonder how you see it. why are we down 139 points today on the dow industrials on the heels of a report that said 171,000 new jobs were created? >> you know, it's almost an impossible question. i wanted to say that it was because we got paid on it maybe yesterday because of the adp report. i'm surprised we maybe gave this much back. that's a real surprise. >> hendrick, real quick, how important is the election to the markets? >> very important, but in the
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end as churchhill said, when the americans exhausted all other options, they'll do the right thing. i'm not too worried about the fiscal cliff debate. i think we're going to get through. markets always get nervous before an election. >> you can always come on this program and quote winston churchill. thank you, gentlemen. see you soon. let's get to bob. why do you think we fell today, bob? what's behind the selloff? >> well, the positive jobs report put a lot of pressure on the dollar. a lot of it around qe-3 and speculation around whether it would continue or qe of any kind. i think that was the main problem. the other problem, and this may have been more important the second half of the day, was apple. when we hit 588 on apple, around the time of 1:00, 1:15 in the afternoon, there's the intraday. you'll notice it just collapsed. the volume picked up rather noticeably. that was the 200-day moving average. that's important. apple has not below the 200-day moving average since november of last year.
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that was a major factor. look at the dow in the middle of the day. the dow drooped right after apple started breaking down. again, around 1:15 or so. it was weak before that. we did have weakness in materials and energy stocks as the dollar was strong. i think that was a factor. but i also think apple really mattered a lot. wouldn't it be nice to have a stock like restoration hardware go public today? in a week where we need restoration. that's what happened. went public at 24. it opened at 32 and closed not far from that price. great day for that company. finally, maria, for the week, no the much of a change. remember, we were only open three days this week. have a good weekend. >> you too. see you later. don't touch that remote. much more ahead on this edition of the close clo"closing bell." stay with us. cleanup costs. superstorm sandy causing billions in damages. now companies are warning the storm will wreak havoc on earnings. the ce e o from clorox is here
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exclusively. plus, sandy causing gas lines reminiscent of the 1970s throughout the new york area. we've got the latest details on the crisis and how ugly it's getting out there. and at least those lines are over something essential like gasoline. check out all the people waiting to get their hands on apple's new mini ipad. there'sing in small about this show today. that and more next. [ male anno] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade.
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welcome back. clorox just one of the many companies where earnings, the schedule was thrown off by hurricane sandy. the company reported wednesday as scheduled, but held off on its investor call until today. company beat rnings expectations by five cents a share. revenue and profit both rose by 2%. taking us through the numbers is the clorox chairman and ceo. good to see you again. thank you for joining us. >> thanks, maria. >> can you walk us through the
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quarter where price hike is the name of the game? was that the bottom line? >> there were three things positive in the quarter for us. first, it was the sefventh quarter in a row we saw a revenue increase. revenue has been challenging for everybody, but i think getting seven quarters in a row now, we feel good about that. the second thing is our gross margins for the first time in 2 1/2 years rose by 110 basis points. that's the first margin expansion we've seen in over two years. that was a real big driver behind the earnings going up. the third thing is our cost savings continue to be very strong. about 170 basis points of cost savings. those three factors drove performance in the quarter. >> what are you seeing in market demand globally? sales increased in the u.s. and abroad. are you seeing a stronger global story today? >> we are. about 2/3 of our business is in latin america.
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most of the latin american countries in the mid-single digits. we see better category growth in general. category growth in the u.s. is picking up, however. we saw about almost 1.5% to 2% category growth in the u.s. that's a big reversal from where it was two years ago where it was down 2%. we're starting to see the consumer stabilize in the u.s. we're certainly seeing better growth in latin america in particular. >> let me ask you about the implications of hurricane sandy. first off, these gas lines in new york. the story has been just horrible with people unable to get gasoline because these gas stations do not have power. has this impacted your business? >> it hasn't yet, maria. we have one major manufacturing facility in the path of the storm. that was in aberdeen, maryland. our folk there is had the plant shut down for about 24 hours from midday monday to midday tuesday. big issue has been getting truckers. the rail hasn't been shut down.
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i'd say by today we're getting fairly back to normal. our folks did a pretty good job of building inventory before the storm hit. so we only think we're down by 100 to 200,000 cases where we would have been. the other thing is working with the red cross, we have a number of trucks going into new jersey today and tomorrow with bleach to help disinfect water on the jersey shore. also trash bags are a big need. we've got glad going into that corridor as well to help with the cleanup. >> so these are some of the products that you think you're going to see that boost in demand because people literally needing them for cleanup. >> that's correct. typically what happens, maria, in these kind of situations, and we've seen it a lot in florida. we've seen it a lot in texas. two products the red cross always comes to us for is bleach because it can disinfect water quickly and clean it up. the second is trash bags. >> so the jobs report, what about that, donald? better than expected. how do you see the jobs story
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today? >> well, certainly getting better. as i said, ting parallels for us the category trends we're seeing. the jobs continue to build a bit. we're seeing the categories in the united states don't recover. obviously, with 70% of the economy driven by consumer spending, as people feel more competent about getting a job or keeping their own job, we think obviously that will drive consumer confidence up. we certainly saw consumer confidence this week better than we've seen it in the last 4 1/2 years. i think the big concern we all have is the fiscal cliff and the impact that could have on demand. >> has it held you back? so many ceos come on the program and say, look, we're not going to make any decisions in terms of adding new heads to the payroll. we're not going to make any decisions in terms of investing until we know what our tax rates will be, until we know if the federal dollars are going to be there. is this one of the issues that has slowed you from perhaps adding more heads to the payroll? >> you know, it really hasn't slowed us from adding heads to the payroll.
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we add those heads based on demand. as i've said, we've seen demand steadily increasing. it's not as robust as four or five years ago, but it hasn't slowed down our hiring much. what it has done is made us cautious about spending on marketing programs when we don't know what demand is going to look like. obviously, if taxes go up on 90% of american consumers come january 1st, it's going to put a dampening effect on demand. i wouldn't say it affects our hiring as much as we look at demand rcreations we're putting out there. i wouldn't say it's a material effect. >> i see. and the election, does that loosen things up for the broad economy next week when we know who the president will be after tuesday? >> well, i think it certainly gives some certainty to what's going to go on. i think it will be interesting to see from our perspective what happens during this lame duck session. i don't think congress and the president, whoever that president is, can diddle too much longer.
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>> for sure. donald, good to have you on the program. thanks so much. >> thank you, maria. >> see you soon. so who would have thunk it? ju it could take less time to buy a new apple ipad mini than it does to fill up your car with gas. up next -- >> this morning we learned that companies hired more workers in october than at any time in the last eight months. >> today we learned that it's actually 7.9%. that's 9 million jobs short of what he promised. >> with the election just three days away, i'll speak with the man who grew the service employees international union into one of the largest unions in the country. we'll discuss the impact of the jobs report. stay with us. offering you tdd#: 1-800-345-2550 low-cost investment options-- tdd#: 1-800-345-2550 like our exchange traded funds, or etfs tdd#: 1-800-345-2550 which now have the lowest tdd#: 1-800-345-2550 operating expenses tdd#: 1-800-345-2550 in their respective tdd#: 1-800-345-2550 lipper categories. tdd#: 1-800-345-2550 lower than spdr
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welcome back. it's the report we've all been waiting for. the october jobs report coming if better than expected today, just days before the presidential election. the unemployment rate exhaactua kicked up a notch. eamon javers here with how the campaigns are reacting. >> there was something for both campaigns to work with. democrats like the fact that 171,000 jobs created was more than expected. republicans, on the other hand, saw a little bit of political opportunity in the fact that the
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jobless rate ticked up from 7.8 to 7.9%. here's how it played on the campaign trail today. >> in 2008, we were in the middle of two wars and the worst economic crisis since the great depression. today our businesses have created nearly 5.5 million new jobs. this morning we learned that companies hired more workers in october than at any time in the last eight months. >> he said he was going to lower the unemployment rate down to 5.2% right now. today we learned that it's actually 7.9%. that's 9 million jobs short of what he promised. unemployment is higher today than when barack obama took office. think of that. >> now, maria, both candidates are going to be in ohio. crucial, all-important ohio, this weekend with just three full campaign days left until election day. there's a lot to be decided here and a lot riding on the next couple days. >> absolutely. thanks very much. my next guest says the jobs
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numbers are evidence, in fact that, the economy is making steady progress. here to make his case is andy stern. he's former president of the service employees international union. now a senior fellow at columbia university. before we get to that, there have been unconfirmed reports -- thanks for joining us, andy. >> good to be here. >> utility crews from out of state that are not unionized, they're getting a hard time, even turned away, by unionized local crews. have you heard this? what can you tell us? >> i haven't heard this. i would hope it's not true. this is a time -- i grew up in new jersey. i lived in new york. i saw a lot of devastatiodevast. we're all americans. we need to figure this out. >> and come together, sure. let's talk about coming together. this jobs number today, romney pointing out that at 7.9%, unemployment, millions of americans are still working for work. you say this number is a good number and evidence that things are actually showing progress. but do we need four more years of this current administration's economic policies if it's been
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so difficult to move the needle? >> i think it's been slow moving the needle. if you think of the fact we were 800,000 jobs losing, we've made a lot of progress. we have an average of 170 j,000 jobs the last quarter. consumer confidence is up. housing starts are up. housing prices are up. i think you see the trend here. i think the ceo you just interviewed acknowledged it. people feel like we've turned a corner, and we need to go forward. going backwards to what we saw with the bush administration where we didn't gain one new net job. there's a reason why the people are trying to bury this congressional research report which says that mitt romney's idea that if we lower taxes we're going create jobs is bogus. it doesn't work. it won't work. >> i don't know that about, andy. i'm going to have to push you back on that. >> why is that? >> many economists have done
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research to show that when there's an environment that is actually attractive for businesses and tax rates are lower, when you broaden the base and lower the rate, that you actually make an environment for business that encourages them to actually put heads on the payroll. add jobs. >> i would like to say mitt romney is not broadening the base. he's simply lowering the rate. what it really is giving back to people in hopes it will trickle down. what the congressional research said and what the republicans have pushed back on is it didn't work. the george bush administration is seven years of empirical evidence that that does not work as an economic program. >> do you think, andy, this latest jobs number changes the trajectory of the election on tuesday? >> i think it just firms up people's understanding and the consumer confidence number, i think, is really important as well. things are getting better, slower than we want. we need to do more. i do think it firms up people's belief we can have four more years. >> probably up until hurricane
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sandy, you know, it was -- it really did feel like mitt romney was going to win this election. now, i don't know if sandy changes things or not. the president showed leadership. so i think that certainly has been a positive for him. if romney does get elected, give me your idea of what the ramifications are for the economy, for the unions. how do you see things playing out if mitt romney wins? >> i think it would be sad day for the middle class. i think it'll be great day for people who have a lot of money. it'll be a great day for people who like their carried interest and like the fact that they pay less taxes than their secretaries. if we look at what happened from 2000 to 2007, we did not create one new net job. we saw inequality grow. we saw people's rights to have an organization diminish. all of that affected the middle class. i think it will be a sad day for the middle class if mitt romney is our president. >> what would you like to see in the next four years if president
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obama does get re-elected? a lot of people debated it. not everything has gone your way under this president. what would you like to see different? >> well, first of all, i'd like to see us build on the health care plan we passed that's going to add 30 million people, many of whom go to work every day and didn't have health care. i'd like to see us deal with the infrastructure we saw that got ruined on the east coast and the issues about the grid and where we go with broadband are enormously important. i like the president's ideas about bringing back manufacturing into our country. i'd like to deal with a broken retirement system in our country that i think there's bipartisan opportunities to make change. so i'd like to see us work on things that when people go to work every day and they work with really hard, they can get ahead, send their kid to college, retire with dignity. i think all of those are possible in the next four years. >> we all agree on that one. andy, good to have you on the program. thank you so much. >> thank you. >> we will see you soon.
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no, this is not an episode of "the walking dead." this is real life. food running scarce in pockets of the new york metropolitan region. we'll do a channel check just outside new york city next. wait until you see what's going on. it is absolutely horrible. plus, gasoline tanks running dry. people actually strategizing when and where to fill up in the new york/new jersey area so they can make it to work on monday morning. we'll tell you when relief will be coming on the gas story. speaking of relief, be sure to watch nbc's special concert benefitting victims of sandy. the lineup includes bruce, billy joel, jon bon jovi, christina aguile aguilera, and sting. the action kicks off here at 8:00 p.m. eastern. don't miss it. back in a moment.
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welcome back. superstorm sandy resulting in something we really haven't seen since the 1970s, mile-long gasoline lines. some drivers are waiting hours to fill up their tanks or gas canisters for their home generators. how bad will this get and wihen
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will it get better? bertha coombs is here with the latest. >> reporter: maria, what's happening here is an infrastructure problem. there's gasoline in a lot of the terminals, but there's just no way to get it out. a lot of it because of power. one of the things that started to unlock that bottleneck, the new york harbor was opened today. in fact, if you take a look right now, there is a barge coming in with some supplies. i haven't seen very much today. we did see some starting last night and this morning. governor cuomo actually said some 2 million barrels of gasoline had been delivered this morning. but the problem then is where they're delivered to. the terminals, like the imtt terminal here in new jersey, they don't have power so they haven't restarted. it's not quite clear when they can restart. those barges need to deliver there in order to get them to tankers that can then get them to gas stations. let me give you an update on
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where we stand on what is coming back. the major pipelines, the colonial and buckeye pipelines and their terminals are operating on generator power. limited, but they are starting to come on this afternoon. long island terminals, some of them also operating on generators, are also coming online today. so they're able to receive some of these shipments. the bp brooklyn inwood terminals are also restarting. phillips 66 has a terminal in lindon. it is partially operating to emergency service vehicles. serve others are coming on. maria, martin bashard, they're the biggest barge operators here in the northeast. by early next week, they'll be at 90%. hopefully a lot of these terminals will be back online by then. they're going to be watching
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carefully. that is really what is making it difficult to get this gasoline out to where it needs to go. >> what an amazing story. bertha, thank you very much. bertha coombs. we'll keep checking back as the story develops. the gas crisis is not the only problem plaguing the new york area. grocery stores are now faced with the challenge of restocking their shelves. jackie deangelis is at a grocery store in new jersey right now with this evolving story. >> reporter: good afternoon. i have to piggy back off what bertha said. power is really the central problem here as well. power is impacting the supply chain to the retail stores. now, we're here at a kings super market in hillsdale, new jersey. they weathered the storm very well. they're waiting for deliveries all throughout the day saying it could be a little hit or miss, but they've pretty much gotten exactly what they've needed. the hot items are things like bread, water, wood, also ice. as soon as it comes in the doors, it's out the doors again. it sells out really quickly.
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we went to some other stores last night and also this morning. the picture wasn't quite as rosy. these were stores that didn't have power. they had to completely get rid of their perishable items. i'm talking empty freezers altogether. they're nonperishables were dwindling down as well. the question at this point really is when is the power going to come back to this tri-state area? we have to get the delivery vehicles to have enough gas to be able to get the supplies to the shelves. you've got a lot of consumers that did stock up before the storm, but they're running low. they're coming to the stores to try to restock. they're also worried about a potential nor'easter next week to add insult to injury. >> exactly. another storm on the way. jackie, thank you very much. up next, is apple's new ipad mini a big threat in the tablet wars? we'll get the verdict from the man who runs hewlett-packard's pc and tablet business next. stay with us.
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welcome back. it's a tale of two lines in the new york area. drivers in the new york area waiting on enormous lines to fill up their tank. apple fanatics trying to get their hands on the new ipad mini. john fort is outside an apple
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store in california with a surprising story. john. >> reporter: marimaria, it's sta wait, though. that line in new york got longer at the fifth avenue store. more than 800 people when the doors opened. hard to gauge exactly what that means, though. a number of other new york stores were closed, of course, in the south of manhattan because of hurricane sandy cleanup. now, here in palo alto, still plenty of back ipad minis in stock. i took a look at the number of reservation cards. looks like there are well over 50 cards. they say they have 16, 32, and 43 gigabyte models in stock. it just got really crowded. lots of people coming in and getting minis. gene muenster of piper jaffray estimates over 1 million. maybe they'll put out a number next week. i haven't heard any word on that
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either way. >> all right, john. thanks so much. the ipad may be getting smaller, but the tablet space is becoming a big battleground. hewlett-packard no doubt one of the key players in the space. todd bradley joins me now to talk about that. thank you for joining us. >> good to be here. >> what do you think of this mini debut by apple? is smaller necessarily better in the tablet wars? >> well, i think there are a whole number of things that are taking place in the tablet marketplace. our focus has clearly been on creating tablets that are going to play right into the enterprise. tablets that are focused on backward compatibility to applications. security and compatibility. i think there's still a host of opportunities broadly in mobile computing of which tablets are a piece of. >> so hp is rolling out the elite pad 900 in january. you're billing this as business friendly. >> exactly.
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and because it is focused on that business user. focused on that cio that needs the ability to go back into all those applications that they run their enterprise with, focused on security, on the usability. so clearly there will be lots of consumer applications that run on the envy, but our focus will be to sell those. it will be the largest pilot program hewlett-packard has ever done. >> so why would a business customer choose the hp tablet when there's so many options out there? this market clearly getting crowded. how do you stand aside from so many other products out there? >> well, you know, that's a good question. i think there are a whole number of ways, starting from how the enterprise will buy, starting from how they secure their information. the simplicity -- again, the integration into that enterprise suite of applications as opposed to bringing something in that has to be deployed.
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we think these tablets are about more than just e-mail and surfing the web. these are about productivity in the enterprise, about the use of all your enterprise information in a very safe and secure way. at the same time, we really looked at how do we verticalize these products. so we've created a suite of accessories that will allow you to do things like scan bar codes, take credit cards, go into a hospital with a very, very health care oriented solution. we really focused on what those enterprises have told us that they need in this next computing platform. >> that kind of intelligence is what's great about a smart phone, right? i mean, that kind of smart, sort of connectivity and interactivity between the device and the user is what makes smart phones so popular. are you worried about the overall pc market, the fact that
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we are talking about 5 billion cell phones on the planet versus 1 billion pcs. of the 5 billion cell phones, only 1 billion are smart phones. huge potential for devices in smart phones, as opposed to pcs. >> well, what we focus on, really, maria, is connectivity. be that pcs or tablets or a whole new suite of products we have that we refer to as convertibles, which will be keyboards with a screen that lifts off and becomes a tablet. clearly, lots of emerging markets see applications for cell phones. but i think as you look at multiple pieces of mobility, be it a smart phone, a tablet, a pc, you have different usage models. that's what we have really focused on. clearly, different segments of this market grow at different rates. they have different penetration rates. but, you know, we're very, very comfortable, a, with the innovation we've brought into the marketplace, the amount of
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money we've spent and continue to spend in research and development to build innovation that matters to these customers, predominantly enterprises. as you know, the consumer market is a big market for us as well. >> absolutely. i just got an e-mail from a viewer. he said steve jobs always came out with new cutting-edge products. he never took what he already had and made something he already had. this tells me apple is hitting an innovation wall. what do you think? >> i'm so focused on hp and how we drive innovative products into these exciting new opportunity. you know, as we've looked at the cloud and what the cloud means, you know, clearly pcs -- >> but you can't ignore apple, todd. it's been owning this space. >> i think it's very, very clear that when you look at the world, you know, we compete with them -- well, we compete in 174
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countries, many of which we face competitors other than apple. as we think about what's important to our customers, how we focus on the enterprise, how we still serve the consumer but focus on the enterprise, very different model. we come out of an ecosystem of hewlett-packard and microsoft and intel. clearly, apple is one of many, many firms that we compete with in multiple ways. we tend to focus on the enterprise, on security for that enterprise and how they immediate their applications as opposed to telling them what they should do. we work with them to develop things they can use. >> right. you make a great point, particularly with the cloud and the usefulness for business, which is a great opportunity for you and this new product. todd, good to talk to you always. thank you so much. >> thanks, maria. >> see you soon. todd bradley joining us from hewlett-packard. groupon shares hitting a record low today. then, the new york city marathon is a go this weekend, but not without raising a lot of
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controversy. as sandy victims struggle to get back on their feet. customer erin swenson bought from us online today. so, i'm happy. sales go up... i'm happy. it went out today... i'm happy. what if she's not home? (together) she won't be happy. use ups! she can get a text alert, reroute... even reschedule her package. it's ups my choice. are you happy? i'm happy. i'm happy. i'm happy. i'm happy. i'm happy. happy. happy. happy. happy. (together) happy. i love logistics.
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welcome back. groupon shares hitting an all-time low. julia boorstin with the details. >> that's right. they were down over 8% earlier today ending the day down about 5% and groupon shares do continue to decline after hours. the stock is down about 80% since its ipo one year ago this sunday. theirs are suffering because the s.e.c. says it has closed an investigation into their financial practices but reserves the right to take action later. the s.e.c. is part of closing its investigation releasing a number of letters. this summer the s.e.c. asked them for details about revenue for its new business line including its goods business which they began to disclose information about mid-august, also asking for information about how it handles refunds and looking for information on the
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reasons behind groupon's financial revisions to its fourth quarter results back in april. the company did not have any additional comment beyond the disclosure of this s.e.c. information and, maria, it's one-year anniversary, certainly not any way to celebrate. back over to you. >> thank you so much. it is all systems go for the new york city marathon. mayor bloomberg saying it will raise money for relief efforts but bad use of resources in light of all the sandy victims still struggling to get their lives back together. my thoughts next. eps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600
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finally today my observation on the new york city marathon. let me begin by saying i am a lifelong new yorker and have seen what the marathon does for the economy of new york and energy it brings to the city. it is no doubt a booster for the economy. with foreigners coming in from all over the world to compete and spend money. there is usually great excitement around this annual event which truly inspires so many of us but let me ask you, do we have any of that excitement this time around? the answer, of course, is a resounding no. and with good reason. the region just experienced an
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unprecedented hurricane which has taken people's lives. dozens are dead in new york alone. it has caused billions of dollars in damages, millions of people right now remain without power. gas lines that have never been seen before. imagine the anxiety of not being able to get gas to even go to work and, of course, the scene in staten island is heartbreaking. the burough hit so hard. generators are being used in central park for marathon runners. i'd completely understand the training these runners do. i sympathize with their disappointment if the race had to be canceled but this race is supposed to inspire people, instead, it is inspiring resentment. there is no way you can credibly say resources needed for this crisis will not be diverted for the marathon. will there be enough police to monitor the marathon and keep
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gas lines from spiraling into violence? all the food and blankets for the runners, would they be better off going to people who can't return to their homes yet? is it that big of a deal to move the marathon by one week? i have some friends running in the marathon and i know they will not be happy with my observation today and i am rooting for them to do really well, i just wish i could root for them a week from now. before we go, take a look at the day on wall street. another tough day for the dow. down in the triple digits, 139 points lower at 13,093, the nasdaq composite gave up 38 points at 2982 and s&p 500 down 13.3 points. the market had been higher up 57 points at its best after the jobs numbers were reported but then completely reversed course and then some as you can see. it was a down week for the major averages, as well. that will do it for "closing bell" tonight. i hope you will follow me on twitter and google+

tv
Closing Bell With Maria Bartiromo
CNBC November 2, 2012 4:00pm-5:00pm EDT

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

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